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Government launches consultation on grandfathering bioliquids

The Department for Energy and Climate Change (DECC) is considering whether to grandfather bioliquids, as part of a consultation on electricity market reform.

Launched by DECC secretary Chris Huhne, the consultation document states: “Some technologies are not currently grandfathered under the renewables obligation (RO) – co-firing, bioliquids, combined heat and power (CHP) and energy crops. We are now considering whether bioliquids produced from wastes and advanced conversion technologies should be grandfathered.”

The grandfathering principle is described by the Government as “the policy intention to maintain a fixed level of support for the full lifetime of a generating station’s eligibility for the RO, from the point of accreditation” and was applied to anaerobic digestion and energy from waste facilities in the Coalition’s response to a Labour Government consultation on grandfathering policy earlier this year.

However, the Government refused to grandfather biofuels in that same response.

It said: “As proposed, we have decided not to adopt a policy to grandfather bioliquids at this stage. We want to consider support for bioliquids within the forthcoming RO banding review, based on further analysis to be done on their costs and the best strategic use of bioliquids across the electricity, heat and transport sectors.”

The consultation document also invites responses over the timings of periodical Government reviews of support levels for biofuels, if a decision to grandfather them is not taken forward.

The consultation document is available here, and closes on 10 March 2011.

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